Lookback Price Breakouts with a Profit-Activated Trailing Stop

Summary

This strategy tracks the highest high and lowest low across a configurable number of previous bars, excluding the current bar. It opens a long position when the close exceeds the prior high by a threshold, or a short position when the close falls below the prior low by that threshold. A one-hour delay after an entry is intended to limit repeated trades. The position is managed with a trailing exit whose distance and offset are set as percentages of the current close.

The document gives parameter defaults and published backtest settings for TRB/USDT on Binance, but it reports no performance statistics or findings from that test. There is also a mismatch in the description: its prose says the trailing stop activates after a 1% gain, while the source default for the activation input is 0.5%. The method may be vulnerable to false breaks, slippage, and parameter sensitivity, and the document itself suggests volume or trend filters as possible additions. Its claims of adaptability are not supported by comparative testing here.

Key ideas

• Entry signals compare the close with prior-bar highs and lows over a configurable lookback.
• The strategy can trade both long and short breakouts.
• A one-hour entry cooldown is intended to reduce repeated trades.
• Trailing exits use percentage-based settings, though the stated activation gain conflicts with the source default.
• Published backtest settings are provided without performance results.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.